John Casmon

Finding and Closing Off-Market Deals with Joseph Gozlan, Episode 76

Successful investors have a knack for finding the path of progress. Where the progress goes, the money follows. In today’s show, Joseph Gozlan, a multifamily investment specialist, shares how he gets ahead of the progress happening North of Dallas. He talks about his current market (Celina and Lubbock) and how he finds other investment opportunities in Dallas. Plus, he shares valuable tips in finding and closing off-market deals, avoiding bad neighborhoods, choosing an apartment opportunity, and how not to lose money through multifamily investing.

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Key Market Insights

Born and raised in Israel, where he served as a lieutenant for the Israeli Defense Forces
Key Takeaways from Military Service: Discipline, Understand Chain of Commands, Leadership
In 2001, studied engineering after his military service
In 2004, became a software engineer, and was relocated to Dallas, Texas in 2007
Purchased single-family homes during the Great Crash
Major Disadvantage of Single-family homes: No other unit can cover expenses or recurring cash flow when things go wrong
Identified multifamily as the most opportunistic asset class, so he transitioned in 2015
First multifamily acquisition involved direct marketing (yellow cards, cold calling, meeting owners) – reasonable price, established a relationship with the owner, lower down payment, owner financing at reasonable terms
Celina Market – far North Texas, a suburb of Dallas; Path of progress, emerging retails, and expanding road infrastructures, near job centers
Dallas Market: North – more affluent suburbs, including Plano, Frisco, McKinney (which is included in Top 10 cities to Live); East – surrounded with lakes that’ll eventually stop growth; West – close to Fort Worth; South – rougher parts of Dallas
Hot Dallas Market: North – job and population growth, close to job centers, transportation hubs
Metrics in Choosing an Apartment – Class B & C properties, close to transportation and job centers, avoid war zones
Identifiers of War Zones – a lot of unemployed individuals and occupied parking and streets
Lubbock Market – secondary market in Texas, and a tertiary market nationwide; Great economic drivers, Texas Tech University, medical facilities, low unemployment rate, population and job growth, emerging retails and infrastructures
Opportunities in Lubbock Market: East – industrial, low-end; North – close to the university; Southwest – blue collar, low crimes, safe and clean
Advice for Investors: Understand the numbers, and get engaged with lenders as soon as possible
Best deals are off-market
Finding Off-Market Deals: Direct Marketing. Be consistent. Position yourself in the frontline